Defeat Debt with Credit Advisors
August 1999

Dear Client,
Summer heat continues.  We hope you are having a good summer.  As we look ahead to September, Credit Advisors will be closed on Monday, September 6 to celebrate Labor Day!

If a creditor calls you,, tell them you are now with a credit counseling agency and they should call 402-393-3100. Give them your client number and the name of your account manager.

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Payday loan outlets are becoming as common as convenience stores.  These loan companies typically charge fees every two weeks for the service.  The service can end up costing an annual interest rate of 300%, 700% or even 1,000% according to the Cincinnati Post.

People who do not have a savings account, credit card or good credit history might try this type of loan.  But because of the very high fees many people will get deeper into debt and it may be almost impossible for some to pay off the principal.

A consumer gives the lending company a postdated check for say, $100 plus a fee of maybe $15.  At the end of two weeks, the borrower has three options:  1) pay back the amount in cash, 2) let the lender cash the check, or 3) get a loan from a second company to pay down the first debt.

A better plan is never to start with these kinds of loans.  Reality says, “If you don’t have the money today you’re not likely to have the money tomorrow.”  Pay for things in cash and don’t borrow against your future!
Source:  Associated Press

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Would you think of a having a second mortgage? 

Real Estate Auction!!!

Same thing!  So read on and think again!!

 Some consumers thought it was a good plan to take out a home equity loan.  They planned to pay off credit card balances.  However, they didn’t have the discipline to stop using their plastic.  An Atlanta-based research firm, Britain Associates, found 4.2 million households used equity loans to pay off credit card debt during a two-year period.  Of those households, two out of three loaded their credit card balances again!!!

 So, not only do these people have to pay the equity loan, they have crushing credit card debt again.  Fail to pay your equity line and you can lose your house!  Don’t let this be a sign in your yard. 

A study by Georgetown University sociologist, Robert Manning found that 70% of students at four-year colleges have at least one credit card.  The debt on the card averages more than $2,000 causing some students to cut back on courses or spend more time working to pay their credit card debts.

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